7,1,2,1. Exclusions

Earned income in kind will not be considered:

1. Company shares

   The delivery of shares or shares of the company to workers in the asset, free of charge or at a price lower than normal company or other companies of the group of companies, in the part that does not exceed, for all those delivered to each worker, 12,000 euros per year, under the conditions established by regulations.

2. Updating, training, or recycling

   Amounts set aside for refreshing, training or recycling of employees when required for the performance of their activities or the characteristics of their positions.

3. Business dining rooms or social economy rooms

   Deliveries to employees of products at reduced prices made in company canteen or social economy. The indirect service provision formulas for the delivery of products at reduced prices that are carried out in company dining rooms, for a value not exceeding 11 euros per day.

4. Social and cultural services

   The use of the goods intended for the social and cultural services of the employees. This consideration will include, among others, spaces and premises, duly approved by the competent public administration, intended by companies or employers to provide the first cycle of child education service to the children of their workers, as well as the contracting of this service, directly or indirectly, with duly authorised third parties.

5. Work-related accident or civil liability insurance

   The premiums or payments paid by the company under the employee's employment accident or civil liability insurance contract.

6. Sickness insurance

   Premiums or payments paid to insurance companies for the coverage of illness when the following requirements and limits are met:

   A) That the coverage of illness reaches the worker, and can also reach his spouse and descendants.

   B) The premiums or payments paid do not exceed 500 euros per year for each of the persons indicated, or 1,500 euros for each of them who are persons with disabilities. Any amount above this will be deemed as earned income in kind.

7. Teaching services

   The provision of the pre-school, child, primary and compulsory secondary education service,

   High school and vocational training by authorised educational centres, for the children of their employees, free of charge or at a price lower than normal market price.

8. Public passenger transport service

   The amounts paid to the entities responsible for providing the public service for collective passenger transport in order to encourage employees to travel between their place of residence and the work centre, up to a limit of 1,500 euros per year for each worker. Indirect payment formulas that meet the conditions established by regulations will also be considered.

9. Loans prior to 1-1-92 (D.A. LAW)

   Loans with an interest rate lower than the legal interest rate of the money arranged before January 1, 1992, the principal of which would have been made available to the borrower before that date.

Delivery of shares or shares to workers (article 41 of the Act)

The following cases shall not be considered as earned income in kind, and are declared exempt from taxation, the delivery of shares or shares to active workers:

The delivery of shares or shares in a company to its workers.

Similarly, in the case of groups of companies in which the circumstances provided for in Article 42 of the Commercial Code are met, the delivery of shares or shares of a group company to workers, taxpayers for this tax, of companies that are part of the same subgroup. In the case of shares or holdings of the group's parent company, the delivery to workers, taxpayers for this tax, of the companies that form part of the group.

In the two previous cases, the delivery may be made by the company to which the worker provides his/her services, or by another company belonging to the group or by the public entity, a state company or a public administration that owns the shares.

The application of the provisions of the previous section will require compliance with the following requirements:

1. The offer is made within the company's general remuneration policy or, where applicable, the group of companies and that contribute to the participation of workers in the company, and that the offer is made in the same conditions for all the company's workers, group or subgroups.

2. Each of the workers, together with their spouses or relatives up to the second degree, must not have a direct or indirect stake in the company where they provide their services or in any other of the group, greater than 5 per 100.

3. The securities must be held for at least three years.

   Failure to comply with this period will result in the obligation to file a supplementary tax return with the corresponding late payment interest within the period between the date on which the requirement is breached and the end of the regulatory period for filing the tax return corresponding to the tax period in which this non-compliance occurs.

Updating, training, or recycling of personnel (Article 44 of the Act)

Studies prepared by Institutions, companies or employers and financed directly by them for updating, training will not be considered as remuneration in kind or the recycling of its personnel, when they are required to carry out their activities or the characteristics of the jobs, even when their effective provision is made by other specialised persons or entities.

In these cases, travel, subsistence and subsistence expenses shall be governed by the provisions of article 9 of the Tax Regulation.

Company dining rooms (art. 45 of the Act)

The direct and indirect formulas for the provision of the service, accepted by labour law, will be considered to be delivery of products at reduced prices in company dining rooms, in which the following requirements are met:

1. The service must be provided for working days for the employee or employee.

2. The service is not provided during the days that the employee or worker accrues maintenance allowances, except for tax.

When the service is provided through indirect formulas, the following requirements must also be met:

1. The amount of indirect formulas cannot exceed 11 euros per day. If the daily amount is higher, there will be remuneration in kind for the excess.

2. If the service is provided to the employee or worker who is a food voucher or similar documents, cards or any other electronic payment method, the following will be observed:

   • They must be numbered, issued in a nominative manner and their nominal amount and the issuing company must appear in them.

   • They will be non-transferable and the amount not consumed in one day cannot be accumulated on another day.

   • No refunds on the value will be available, either from the company or a third party.

   • Only used in hospitality establishments.

   • The Company that delivers them must keep and maintain the relationship of those who are delivered to each of its employees or workers, in the words of:

     In the case of food vouchers or similar documents, the document number and delivery day and nominal amount.

     In the case of cards or any other electronic means of payment, document number and amount delivered each day with the indication of the latter

Indirect payment formulas for the public service for collective passenger transport (Art.46. Bis R.D 439/2007).

Indirect payment formulas for amounts shall be considered to be those entities responsible for providing the public passenger transport service, the delivery to card workers or any other electronic payment method that meets the following requirements:

1. It can only be used as payment for transport tickets to be used on public or collective means of transport.

2. The amount that can be paid with them may not exceed 136.36 euros per worker per month, with a limit of 1,500 euros per year.

3. They must be numbered, issued in a nominative form and must be included in them by the issuing company.

4. They will be non-transferable.

5. No refunds on the value will be available, either from the company or a third party.

6. The company that delivers the cards or the electronic payment method must keep and maintain the relationship of those delivered to each of its workers, with the expression of

   1. Document number.

   2. Annual amount made available to the worker.

In the event of delivery of electronic cards or payment methods that do not meet the above requirements, there will be remuneration in kind for all amounts made available to the worker. However, in the event of non-compliance with the limits indicated in the previous , there will only be remuneration in kind for the excess. 2